The State Government might be on the verge of enacting new laws to ban smoking and smokeless tobacco although the existing ones relating to display of tobacco products continue to witness rampant violation.
Display of advertising hoardings promoting tobacco products
directly or indirectly continues to be on a high with very minimum
efforts coming from the concerned authorities to remove these illegal
hoardings which were put up violating the Section 5 of the COTPA
(Cigarette and Other Tobacco Product Act).
However, if sources are to be believed, the authorities are now contemplating legal action against the tobacco manufacturing companies.
The
Section 5 of the COTPA prohibits advertisement which directly or
indirectly suggests or promotes use or consumption of cigarettes or any
other tobacco products.
“We had taken steps to make aware the pan shop owners about the laws but it had hardly yielded results
for us except in few areas. We are now contemplating legal action,”
sources pointed out, adding that infringement of the Section 5 is going
on in almost all the localities of Guwahati as well as other places with
the tobacco companies pushing that extra hard to promote their brands.
Sources, however, maintained that the drive to remove banners and hoardings put up in violation of the laws would go simultaneously.
As per the amendment rule of the Section 5 of the COTPA, tobacco products can be advertised in the package containing tobacco products, on the entrance and inside a warehouse storing tobacco products and at the point of sale or distribution only.
But presence of hoardings advertising tobacco products,
larger than the prescribed size (60cm x 45cm) at the point of sale and
more than two boards at one point of sale are regarded as violation of
the Section 5.
Illuminated or backlit boards at the point of sale, open display of tobacco products by a shop owner
for sale, indirect/surrogate advertisement of tobacco production in any
form such as in apparel, sports gear, accessories and others are also
not allowed.
Sources further rue that the cigarette companies have also compelled the pan shop owners to display the cigarette products openly by signing a deal where they (the companies) will renovate the shops with preconditions of proper display of the cigarette brands.
In
Guwahati and other major towns cigarette companies have renovated pan
shops by fixing hoardings larger than (60 cm x 45 cm) size displaying
their brand names without exhibiting the pictorial warnings.
Wednesday, October 23, 2013
Big Tobacco Means Big Income, But Should Investors Be Worried?
When looking at the yields of the major tobacco companies, they may
seem too good to be true. This is especially true for Altria Group (MO),
the highest yielding of the big tobacco companies, and also the
best-run company in the sector, in my opinion. Let's take a look at the
company, where it may be heading, and if the dividend is sustainable
going forward.
Altria Group
Formerly known as Phillip Morris, Altria is a holding company with some of the most popular tobacco brands in the world among its portfolio. The company produces such cigarette brands as Marlboro (bestselling brand in the U.S.), Merit, Basic, Virginia Slims, and Parliament, just to name a few. The company also has an extensive wine business, including the Chateau Ste. Michelle Wine Estates as well as such wine brands as Fourteen Hands, Stag's Leap, Seven Falls, and about a dozen more. Altria also owns U.S. Smokeless Tobacco Company, with the popular brands Skoal and Copenhagen.Phillip Morris producer of Chesterfield cigarettes and Marlboro Flavor Note cigarettes.
Beware of the anti-smoking trend?
With the anti-smoking trend in the U.S., should investors be worried? I would say "not really", and for a couple of reasons. First, although the percentage of adults in the U.S. is definitely dropping, the actual number of smokers is staying relatively constant. For example (not factual numbers), let's say that in 1960 about 50% of the adults in the U.S. were smokers and the total adult population was 75 million, meaning that 37.5 million U.S. adults were smokers. Let's also say that in 2010 that only 20% of American adults smoked, but the population had risen to 180 million adults, meaning that 36 million adults were smokers (the actual number of U.S. smokers today is around 45 million). In other words, the effects of the rising U.S. population is somewhat offsetting the lower percentage of smokers.
Also, with the invention of electronic cigarettes, tobacco users have an additional option besides quitting smoking outright. Even regular smokers are using electronic cigarettes some of the time, like in bars and restaurants where cigarette smoke is not allowed. Altria launched its first e-cigarette this summer through its NuMark subsidiary, and although this is a young industry, research has suggested that Altria could add $5 billion in value to its company by capitalizing on the e-cigarette market while it's still in its infancy.
Altria Group
Formerly known as Phillip Morris, Altria is a holding company with some of the most popular tobacco brands in the world among its portfolio. The company produces such cigarette brands as Marlboro (bestselling brand in the U.S.), Merit, Basic, Virginia Slims, and Parliament, just to name a few. The company also has an extensive wine business, including the Chateau Ste. Michelle Wine Estates as well as such wine brands as Fourteen Hands, Stag's Leap, Seven Falls, and about a dozen more. Altria also owns U.S. Smokeless Tobacco Company, with the popular brands Skoal and Copenhagen.Phillip Morris producer of Chesterfield cigarettes and Marlboro Flavor Note cigarettes.
Beware of the anti-smoking trend?
With the anti-smoking trend in the U.S., should investors be worried? I would say "not really", and for a couple of reasons. First, although the percentage of adults in the U.S. is definitely dropping, the actual number of smokers is staying relatively constant. For example (not factual numbers), let's say that in 1960 about 50% of the adults in the U.S. were smokers and the total adult population was 75 million, meaning that 37.5 million U.S. adults were smokers. Let's also say that in 2010 that only 20% of American adults smoked, but the population had risen to 180 million adults, meaning that 36 million adults were smokers (the actual number of U.S. smokers today is around 45 million). In other words, the effects of the rising U.S. population is somewhat offsetting the lower percentage of smokers.
Also, with the invention of electronic cigarettes, tobacco users have an additional option besides quitting smoking outright. Even regular smokers are using electronic cigarettes some of the time, like in bars and restaurants where cigarette smoke is not allowed. Altria launched its first e-cigarette this summer through its NuMark subsidiary, and although this is a young industry, research has suggested that Altria could add $5 billion in value to its company by capitalizing on the e-cigarette market while it's still in its infancy.
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